This past Wednesday night, July 20, the 5th Legislative District Democrats passed a resolution of support for Glass Steagall. On the same night the Northwest Washington Central Labor Council (AFL-CIO) passed a resolution endorsing the Glass-Steagall legislation in Congress. Both of these groupings join a growing bulwark of support for Glass Steagall throughout the country, among labor, democratic committees, and many individuals and institutions.

The full text of their resolution is as follows.
RESOLUTION URGING CONGRESS TO REINSTATE THE BANKING ACT OF 1933

WHEREAS the following Resolution has been approved by the King County Democratic Party Central Committee (KCDCC) on June 28, 2011 and

WHEREAS, an effective and stable banking system is essential to the functioning of our economy; and

WHEREAS, from 1933 to 1999, the Federal Banking Act, also known as Glass-Steagall, laws did protect the public interest by separating and regulating commercial banking, investment banking, insurance companies and securities firms; and

WHEREAS, the lack of such protection since 1999 has encouraged financial industry segments to exploit the financial system for their own gain, in violation of the public interest and to the severe detriment of the economy and general welfare; and

WHEREAS, the U.S. Congress and Senate have attempted to restore the Banking Act of 1933/Glass-Steagall laws by means of S.2886 Banking Integrity Act (now under the jurisdiction of the Senate Banking Committee), Senate Amendment 3884, H.R. 4375 Glass-Steagall Restoration Act, H.R. 4377 Return to Prudent Banking Act, and H.R. 4461 Banking Integrity Act) to benefit our nation and people; and

WHEREAS, on April 12, 2011, H.R. 4377 was reintroduced as H.R. 1489 Return to Prudent Banking Act stating, to repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business in the manner provided by the Banking Act of 1933, the so-called Glass-Steagall Act, and for other purposes; and

WHEREAS, the Financial Crisis Inquiry Report, issued January 2011, finds that our financial system is, in many respects, still unchanged from what existed on the eve of the crisis and the U.S. financial sector is now more concentrated than ever in the hands of a few large, systemically significant institutions.

NOW THEREFORE, Be it resolved by the 5th District Democrats of King County, Washington that:

The 5th District Democrats urge the United States Congress, in order to prevent American taxpayers from having to bail-out financial institutions, to enact legislation to reinstate the Banking Act of 1933 laws to prohibit commercial banks and bank holding companies from investing in stocks, underwriting securities, investing in or acting as guarantors of derivatives transactions.

On July 2, 1999, Rubin retired and Larry Summers became Treasury Secretary. In October Rubin joined Citigroup where he would eventually be paid over a $115 million.

On July 20, 1999 the House amended S.900 with the contents of their own bill and then the House and Senate sent it conference committee on the 30th where it remained for almost 2 months with no action taken. Reporting on the conference negotiations in the LA Times on November 2, 1999, Robert Scheer wrote:

Only last week, as the bill was being pushed through a congressional conference committee, Treasury Secretary Lawrence H. Summers rushed back from a trip to China to huddle with lobbyists representing Citigroup, Goldman Sachs, Merrill Lynch and other financial giants. The meeting was closed to the media and public, but one participant told the New York Times that Summers lectured the lobbyists on how to spin this bill so it appears to be in the public interest. "He said it would be very unfortunate if any financial institution were to suggest that they do not see the broad public purpose of this legislation," the lobbyist reported.

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Finally, during the first week of November, S.900, the Gramm-Leach-Bliley Act, was reported out of committee and passed in the Senate 90-8 and in the House 362 &#8211; 57. Glass-Steagall was finally repealed and Democrats as well as Republicans celebrated.

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